cash out refi

[villiagepeople]

Question for all the brokers/loan agents on this board...

I'm looking to do a cashout refi... now before anyone gets all crazy about me being not responsible... let me tell you my situation.

I bought a San Mateo home in 2011 and I put down 30%.  Fast forward to 2014 and the last phase of the San Mateo homes went up ~25% from my purchase price.  My parents are near retirement and have $125k left in their house in L.A. county.  I would like to pay off their mortgage and roll it into mine so that they don't have this mortgage burden in their retirement years.  If I refi cash out 125k I will have a loan balance of slightly less than 500k but still be under the 80% LTV.  So I wrote an email to a lady my cousin knows who is a "direct lender" and she said "you can only cashout to 417K ... once you go over conforming into high balance conforming 417-625K, max LTV is 60%" [which means the loan amount would be less than 417k at the current value of my home].  Does anyone know if there are programs/lenders that will allow a LTV of >60% on a cashout refi? 

 

[usctrojancpa]

Question for all the brokers/loan agents on this board...

I'm looking to do a cashout refi... now before anyone gets all crazy about me being not responsible... let me tell you my situation.

I bought a San Mateo home in 2011 and I put down 30%.  Fast forward to 2014 and the last phase of the San Mateo homes went up ~25% from my purchase price.  And my parents want to retire and have $125k left in their house in L.A. county.  I would like to pay off the mortgage and roll it into mine so that they don't have this mortgage burden in their retirement years.  If I refi cash out 125k I will have a loan balance of slightly less than 500k but still be under the 80% LTV.  So I wrote an email to a lady my cousin knows who is a "direct lender" and she said "you can only cashout to 417K ... once you go over conforming into high balance conforming 417-625K, max LTV is 60%" [which means the loan amount would be less than 417k at the current value of my home].  Does anyone know if there are programs/lenders that will allow a LTV of >60% on a cashout refi? 

Yeah, look into a HELOC.  PenFed allows you to go up to 75% LTV on 2nd/vacation homes. 

 

[sgip]

Once you cross $417k, many banks will give you the option of funding your loan using their Jumbo (non-conforming) guidelines versus Fannie / Freddie paper. In those cases the rules are much different for that type of mortgage product compared with a traditional High Balance Conforming loan.

As of this writing, I'm only able to use our jumbo product on purchase loans, subject to change soon, but I know there are banks who offer jumbo loans at $417,001 and above. Call around to "the biggies" and find out what their program guides are for loans over standard conforming limits. I'm sure you'll find one of the majors who can put this together.

My .02c